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WASHINGTON, June 6, 2022 – The American Petroleum Institute, the Consumer Energy Alliance, the Louisiana Mid Continent Oil and Gas Association, the National Ocean Industries Association and the U.S. Chamber of Commerce today joined with more than 80 trade groups representing a diverse cross section of industries in calling on the Biden administration to act on policies that support U.S. energy security and increase domestic production of natural gas and oil. In a letter to President Biden, the signatories urged the administration to implement a new 5-year program for federal offshore leasing as soon as possible.
“For the U.S. to continue to be an energy leader into the future, smart and effective energy policies are needed today. However, your administration’s policies have often hindered domestic producers’ ability to deliver on this growing demand. Oil and natural gas leasing on Federal lands and waters has essentially stopped, despite court orders, and while DOI has taken steps to complete and implement the next 5-year Program, there will be an unprecedented gap between the current and next 5-year Program,” the letter states.
The letter follows testimony from Secretary Haaland last month, during which the Secretary confirmed that the Department of Interior (DOI) is far behind in the process of developing and implementing a 5-year program and will not have a new plan in place by the time the current program expires on July 1. Offshore production in the Gulf of Mexico currently represents over 15% of natural gas and oil production and is among the lowest carbon-intensive production in the world. Without a 5-year program in place, no new offshore lease sales can be held, leaving future domestic production in jeopardy.
“We are at a critical time where a lack of federal action and regulatory uncertainty may discourage companies from making the multi-billion-dollar investments needed to develop offshore resources in the U.S. and ensure the long-term viability of a lower-carbon national strategic asset,” the letter states. “If the door closes to new U.S. production, investment dollars will instead flow abroad to more active basins to the detriment of American workers, energy consumers, and the environment.”
The letter outlines the following actions that the administration can take to avoid further economic impact and help ensure accessible, affordable, and reliable energy here in the United States:
Execute the laws that mandate the DOI complete a long-term offshore leasing program with robust lease sales to avoid unnecessary production and development disruption. This requires the prompt completion of the steps necessary to finalize the OCS Leasing Program for 2022-2027. The expected delay will harm American investment, production, and jobs. The delays are already having an impact on investment and jobs throughout the supply chain.
Provide certainty on oil and natural gas leasing by compelling the DOI to meet deadlines and honor its obligation to lease on federal lands and waters.
Signatories of the letter include:
American Petroleum Institute
Consumer Energy Alliance
Louisiana Mid Continent Oil and Gas Association
National Ocean Industries Association
US Chamber of Commerce, Global Energy Institute
American Chemistry Council
American Exploration & Production Council
American Trucking Association
EnerGeo Alliance
Energy Marketers of America
Energy Workforce & Technology Council
Independent Petroleum Association of America
International Association of Drilling Contractors
National Association of Manufacturers
Offshore Operators Committee
US Oil & Gas Association
API Colorado
API Gulf Coast Region
API Illinois
API Midwest Region
API Northeast Region
API Ohio
API Pennsylvania
API Southeast Region
Arkansas Oil Marketers Association
Associated Builders and Contractors of Pennsylvania
Associated Builders and Contractors of West Virginia
Associated Industries of Florida
Associated Pennsylvania Constructors
Chamber of Commerce Southern New Jersey
Chemical Industry Council of Illinois
Coalbed Methane Association of Alabama
Colorado Business Roundtable
Consumer Energy Alliance, Alaska
Consumer Energy Alliance, Florida
Consumer Energy Alliance, Gulf Coast
Consumer Energy Alliance, Mid-Atlantic
Consumer Energy Alliance, Midwest
Consumer Energy Alliance, Northeast
Consumer Energy Alliance, Rockies
Florida Forestry Association
Florida Independent Petroleum Producers Association
Florida Natural Gas Association
Florida Petroleum Marketers Association
Florida Propane Gas Association
Florida Restaurant and Lodging Association
Florida Retail Federation
Florida State Hispanic Chamber of Commerce
Florida Tax Watch
Florida Transportation Builders Association
Gas and Oil Association of West Virginia
Greater Lafourche Port Commission
Gulf Economic Survival Team
Illinois Manufacturers’ Association
James Madison Institute
Louisiana Association of Business and Industry
Louisiana Oil and Gas Association
Manufacture Alabama
Manufacturer & Business Association
Marcellus Shale Coalition
Maritime Exchange for the Delaware River & Bay
Michigan Petroleum Association
New Jersey Chamber of Commerce
New Jersey Gasoline, Convenience Store, Automotive Association
API represents all segments of America’s natural gas and oil industry, which supports more than 11 million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. Our nearly 600 members produce, process and distribute the majority of the nation’s energy, and participate in API Energy Excellence®, which is accelerating environmental and safety progress by fostering new technologies and transparent reporting. API was formed in 1919 as a standards-setting organization and has developed more than 800 standards to enhance operational and environmental safety, efficiency and sustainability.
